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Minimum pension drawdown rates halved for 2019/20 and 2020/21

As part of a number of recent Federal Government announcements, due to the economic impact from the virus, they have also announced that the minimum pension drawdown rates would be temporarily halved for the 2019/20 and 2020/21 financial years, for people who are in pension mode within super. This simply means that retirees are not required to take out as much from super, if they do not need the cashflow, and retain more funds within the superannuation environment.

The minimum amounts you can withdraw each financial year under the temporary arrangements are set out in the table below, alongside the previous rates.

For example, someone aged 65–74 must withdraw 2.5% of their account balance this financial year (previously they had to withdraw 5%).

The percentage factor is set according to your age on 1 July in the financial year the pension is to be paid.

If you have any questions regarding the above or wish to discuss how we can help you, please contact the office on 03 9629 1100.

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